How Much Do Healthcare Managers Make?
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- Healthcare management is a fast-growing sector with many niches.
- Healthcare managers earn a higher average wage than most workers.
- Healthcare managers enjoy many career paths with subspecialties.
The healthcare industry in the United States is complex and rapidly growing. As such, healthcare organizations across the country need dynamic and dedicated managers. The day-to-day duties of these positions vary depending on what area of an organization they manage. However, they all have real impacts on their organization, patients, families of patients, and the communities at large.
Healthcare managers typically earn more than six figures per year. These professionals can earn more when they work in hospitals. Work experience can also increase wages as managers gain seniority and become top executives.
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What Is the Average Healthcare Management Salary?
According to data from the Bureau of Labor Statistics (BLS), medical and health services managers earn a median annual wage of $101,340 as of 2021. This is more than managers in other industries, who earned a median salary of $97,603 per year.
Healthcare managers in hospitals earned a median salary of $119,450. That's more than those in government organizations, outpatient care centers, physician offices, and residential care facilities. The top 10% of healthcare managers earned $205,620 per year or more in 2021.
Job Growth for Healthcare Management
The BLS projects a 28% increase in healthcare management jobs between 2021 and 2031. That's much faster than the projected growth for all jobs, which is 5%. The pandemic and an aging population in need of more care are partially responsible for this projected growth. More healthcare technology and complexity in healthcare systems are also factors in the need for healthcare managers.
Highest-Paying Healthcare Management Jobs
High-paying healthcare management jobs tend to require advanced degrees, years of experience, or both. These positions tend to be at the highest levels of management within an organization, including many executive-level jobs.
|Healthcare Manager Job||Average Annual Salary (2022)|
|Chief Medical Officer||$299,740|
|Hospital Chief Executive Officer||$154,060|
|Chief Nursing Officer||$135,220|
|Clinical Informatics Manager||$97,270|
|Project Manager, Pharmaceuticals||$94,910|
Data from Payscale
Explore Bachelor's in Healthcare Managment Programs
How Much Do Healthcare Managers Make By State?
As with many occupations, healthcare managers in states with high costs of living tend to earn higher wages than those in low-cost states. However, there are some surprises in the data by state. For example, some states with many rural areas pay relatively high wages. This could be due to the need to retain healthcare talent in rural hospitals.
Median Salary for Healthcare Management Careers by State (2021)
Data sourced from the BLS
|Medical and Health Services Manager||General and Operations Managers||Social and Community Service Managers|
District of Columbia
District of Columbia
District of Columbia
Data sourced from the BLS
What Field of Healthcare Management Pays the Most?
According to the BLS, healthcare managers in hospitals earned the highest median annual wage in 2021 at $119,450. These supervisors may oversee specific floors or functions within a hospital. Healthcare managers in government organizations also earned a higher median salary than healthcare managers broadly, making $117,000 per year.
More Education Leads to a Higher Healthcare Management Salary
Bachelor's in Healthcare Management Salary
A bachelor's program in healthcare management can teach students about the business fundamentals, healthcare industry, and management basics. Learners prepare to manage operations throughout the industry, including human resources, facilities, and administration. Some graduates go on to earn master's degrees in the subject as well.
The healthcare industry is complex. Medical and health services managers keep all the moving parts working as they should. They typically oversee a few vital functions within an organization. This might include clinical quality, insurance billing, hiring, budgeting, and more.
These professionals work in many industries, including healthcare. Administrative services managers supervise the administrative staff that keep healthcare organizations running, including overseeing health records, billing, and patient services. Facilities managers oversee the functions that keep medical facilities clean and safe. This may include security, janitorial duties, and more.
As the healthcare industry faces several shortages, attracting and retaining top talent is a high priority for many organizations. Compensation and benefits managers play a vital role by administering benefits packages. Some also set the pay structures.
Master's in Healthcare Management Salary
Learners who want a master's degree in this field may opt for an MBA with a concentration in healthcare management. These programs give students deeper insight into the healthcare industry. Learners take courses in areas such as health systems management, healthcare reform, health policy, and global health.
Chief executives in a hospital are at the highest manager level in their particular part of the organization. For example, a Chief Financial Officer is in charge of the hospital's finances, while the Chief Nursing Officer oversees all nurses in the organization.
Marketing is an important part of any business, including in the healthcare industry. Marketing managers in a hospital build and execute marketing campaigns that help patients choose that hospital for their healthcare needs. These managers usually oversee a department of marketing specialists.
Ambulatory health services occur at outpatient locations, such as surgical centers, physicians' offices, and dialysis centers. Operations managers in this sector ensure these locations run smoothly. They may participate in hiring, employee scheduling, patient scheduling, shipping, billing, and more.
Doctorate or Ph.D. in Healthcare Management Salary
A doctorate in healthcare management is an excellent option for practicing healthcare providers who have graduate degrees and want to transition into management. It can also be a great path for anyone who wants to teach healthcare management or conduct research. Many programs at this level are doctor of business administration (DBA) degrees with concentrations in healthcare.
These professors teach the next generation of healthcare managers. They may teach at any level of college. Professors also conduct research in their areas of expertise. This research can help advance healthcare management and policy.
All other chief executives in a hospital report to the chief executive officer (CEO). The CEO is the top manager in the organization and often makes final decisions that affect the whole hospital. They must have excellent business instincts, people skills, and strong communication abilities.
These top executives have experience in medical practice, typically as physicians. They can work in any organization within the healthcare industry, including at large health systems, healthcare technology companies, and hospitals. They manage clinical quality and staff within an organization.
Frequently Asked Questions About Healthcare Management Salary
Is becoming a healthcare manager worth it?
Becoming a healthcare manager is worth the effort for anyone who wants to impact healthcare in their community and earn an above-average salary. As leaders, these professionals make a difference for healthcare practitioners, patients, and other members of the community. According to the BLS, medical and health services managers earned a median annual wage of $101,340 in May 2021. That is more than double the median salary across all workers in the U.S.
Healthcare management is a rapidly growing field with many subspecialties. As such, healthcare managers enjoy plenty of career growth potential. They can also find specific areas within healthcare management where their unique talents can flourish.
Where do healthcare managers make the most money?
On average, medical and health services managers who work in hospitals and government organizations make more than their peers in outpatient centers, physicians' offices, and residential facilities. In hospitals, they earned a median annual salary of $119,450 in May 2021. The figure is $117,000 for the managers who work in government organizations. This is higher than the median for all medical and health services managers.
Which healthcare management jobs pay the most?
The healthcare industry is complex, which often means there are management hierarchies within healthcare organizations. Healthcare managers tend to make more as they move up these hierarchies into high levels of management. Some of the highest-paid healthcare managers are the top executives, including chief medical officers, chief nursing officers, and chief executive officers.
Professionals in health informatics and pharmaceuticals also tend to earn some of the highest salaries in healthcare management. For example, clinical informatics and project managers in pharmaceuticals are some of the highest-earning professionals in this field.
How can a healthcare manager make more money?
As with many management careers, healthcare managers earn more money when they gain and demonstrate marketable skills. While the most profitable skills vary within positions, data from Payscale shows that these skills tend to increase salaries for healthcare managers:
- Data analysis
- Strategic planning
- Project management
- Home health
- Team management
Other skills can help professionals earn more in specific areas of healthcare management. For example, Payscale shows that chief medical officers earn more when they have quality improvement and operations management skills.
What is the highest salary a healthcare manager can make?
Chief medical officers earn the highest average salary of all healthcare managers, according to Payscale. These professionals usually have a clinical background, typically as doctors. However, not all healthcare managers are doctors or want to practice as clinicians. Healthcare managers without direct care experience can work toward becoming chief executive officers of hospitals. These professionals also make more than six figures per year.